Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Property News

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Residex has presented the statistics summary for April looking at rental markets across Australia.
It suggests rents dipped in Sydney for houses over the past year.
The big annual rental falls for houses and units continues to be in Perth and Darwin.
Table 1: April 2016 Summary 
Houses
<a href="/images/2016/06/03/Screen%20Shot%202016-06-03%20at%201.00.17%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/03/Screen%20Shot%202016-06-03%20at%201.00.17%20PM.png" alt="">
Units 
<a href="/images/2016/06/03/Screen%20Shot%202016-06-03%20at%201.00.25%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/03/Screen%20Shot%202016-06-03%20at%201.00.25%20PM.png" alt="">
Source: Residex
 
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jchancellor-FAypfDUnLy

Residex pinpoints rents dipping in Sydney

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The decision to revalue properties on the Kings Cross strip have been welcomed by real estate agency Gunning.
The decision by the Valuer General to step in and respond to a change of market conditions was the right move, said Gunning principal Malcolm Gunning. 
"NSW Valuer General Simon Gilkes took advice on the changing retail conditions due to the lockout laws and revisited the land values in the area based on their effect," Gunning said.
The lockout laws restrict the entry of patrons after 1.30 am and have affected property values in the area, according to a report by the Valuer General.
"He also recognised that the area is rapidly changing with the two major residential developments, at the site of the Crest Hotel and the Bourbon Hotel," added Gunning.
"It is great to see that Gilkes understands the property market and is willing to seek and ultimately take advice from industry experts in the form of the Land Valuation Advisory Group." 
"His decision clearly reflects the current state of affairs on the Kings Cross strip and recognises that valuations can move in either direction. This is a great win for the Kings Cross strip and NSW."
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prateek24-ezbwHMbNAk

Revaluation of properties in Sydney's Kings Cross due to lockout laws welcomed

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The 2018 Commonwealth Games is estimated to inject $2 billion into the Gold Coast economy, with $320 million worth of construction projects, making it an attractive prospect for investors.
Infrastructure benefits would include 1,200 apartments (built for the Athlete’s Village) as well as helping the tourism industry and transport.
The Liveable Housing Design of apartments would make them suitable for all people; regardless of age, family needs or mobility.
The announcement of Commonwealth Games has helped the Gold Coast property market, similar to what it did for Sydney (Olympics, 2000) and Melbourne (Commonwealth Games, 2006), according to a presentation by PRDnationwide.
Between 2014 and 2015, houses in the area recorded a rise in median prices of 6.7%, says the research.
Average days on market and vendor discounting has also been improving over the four quarters to Q4, 2015. Combined average vendor discounting has decreased compared to 2014, sitting at a combined average of -3.4% in 2015, suggesting buyer competition is increasing and people are willing to pay more to secure the deal.
"Whilst major developments projects relating to the Commonwealth Games and infrastructure improvements are taking place across the Gold Coast, the property market has shown positive performance. An increase of 13.2% in house transactions and 14.5% in unit sales over the past 12 months suggests demand is heating up – thus now is the perfect time to enter the market," it says.
Grocon Pty Ltd was chosen to be the developer for the Games Village in 2014, and it is Grocon’s first large-scale construction on the Gold Coast. 
<a href="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%2010.39.21%20AM.png" target="_blank">Click to enlarge</a>
<h3>
<img src="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%2010.39.21%20AM.png" alt="" width="671" height="328"> </h3>
<h3><a href="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%2010.45.08%20AM.png" target="_blank">Click to enlarge</a></h3>
<h3><img src="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%2010.45.08%20AM.png" alt="" width="804" height="399"></h3>
Recent market condition
Robust performance in Southport, Coomera and Carrara house markets suggests positive impact of 2018 Commonwealth Games related major project developments on the property market of these suburbs.
• Southport
Annual Median Price Growth: +8.8% (House), +3.3% (Units) Annual Sales Transaction Growth: +29.4% (House), +26.2% (Unit)
Southport recorded higher median price growth compared to Gold Coast City LGA of 6.1% and 1.9% for house and unit respectively. Double digits increase for sales price in conjunction with an increase in sales transaction indicates strong demand and real capital growth in the area.
• Coomera
Annual Median Price Growth: +3.8% (House), +10.7% (Unit) Annual Sales Transaction Growth: +36.5% (House), -6.0% (Unit)
High increase of house median growth and sales transactions in Coomera suggests that its house market has performed well, making it one of the most outstanding suburbs in the Gold Coast.
• Carrara
Annual Median Price Growth: +4.6% (House), +0.8% (Unit) Annual Sales Transaction Growth: +34.1% (House), +8.3% (Unit)
Carrara popularity has risen for the past 3 years given its consecutive increase of median price for houses. Buyers are shifting their attentions to enter Carrara property market.
Health and education investment is also getting a boost with $10.2 million in funding is set to be directed to the Gold Coast Hospital over the next two years, resulting in 6,700 patients receiving outpatient surgery before 30 June 2017. Additionally, $50 million in funding will go towards a school in Coomera, creating both job and education opportunities.
<a href="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%2011.00.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%2011.00.39%20AM.png" alt="" width="790" height="328">  
The Gold Coast market recap for 2015 above clearly identifies that houses in almost all of the suburbs surrounding the 2018 Commonwealth Games have witnessed median price growth over the past 12 months, PRDnationwide says.
Coomera and Runaway Bay have been some of the strongest performers witnessing combined average growth of 7.3% and 13.6% respectively.
Gerald Adam (PRDnationwide Southport Principal) confirms the projected growth for 2015 of 7.0% has been surpassed in Southport, with a median house price growth of 8.8%.
Greg Brewster (PRDnationwide Runaway Bay Principal) states that he has received a high number of interstate investor interests for his area as infrastructure developments adds value from the investor perspective.
Both share similar expectations of their areas upcoming future positive growths, backed by infrastructure developments, 2018 Commonwealth Games and their individual suburb locational features.
The recent growth witnessed is expected to continue up to 2018 and beyond thanks to overall improvement in market conditions as well as the infrastructure and publicity the Gold Coast will be receiving due to the Commonwealth Games.
The Gold Coast City Council has one of the highest projected population growth in Queensland and as was the case with previous sporting events in Sydney and Melbourne, it is expected that the new development will not go to waste, but rather enhance the attractiveness of the surrounding areas. 
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jonathanchancellor-7SQnKwU6yx

2018 Commonwealth Games boosting property market in Gold Coast: PRD Research

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Investa Property Group has appointed Jonathan Callaghan as its chief executive officer and Peter Menegazzo as its chief investment officer.
The CEO appointment was announced by the chairman, David Baffsky.
Mr Callaghan has been with the group for more than 10 years, initially as group general counsel and more recently as managing director and finance director.
Mr Menegazzo has been with Investa for over 11 years.
The former chief executive Campbell Hanan is at Mirvac. 
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Investa appoints Jonathan Callaghan as CEO

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Two new properties are listed on the top ten discounted properties nationwide list from SQM Research - one in South Perth, the other in New South Wales.
The South Perth property, number two on the list, has had the price reduced $775,000 according to SQM managing director Louis Christopher.
He said the home, 82 Douglas Road South Perth, first came on the market in March 2016 with an original asking price of $1,950,000.
"The vendor has reduced the price twice, once in the middle of March, then again late last month. Overall, the property has been reduced by a massive $775,000," he said.
"With a total four bedrooms, four bathrooms, and two car spaces, and a reduction of 40 percent this property certainly has a lot to offer.
"It features two studies, two large living rooms, a generous combined kitchen and dining quarters, shed, recently installed reverse cycle air-conditioning and a below ground outdoor pool. The property is located approximately 7km outside of Perth CBD, and within short walking distance of public transport."
The second property, 69 Sarah Road Matcham, on the NSW Central Coast has spent some 516 days on market already and first came on the market in December 2014 with an asking price of $2,570,000 that was cut to under $2 million in January 2016.
It was reduced further to its current listing price of $1,775,000 last month, Louis Christopher said.
"The listing also states that a large selection of the current furniture is also included in the sale price. This is great news for interstate buyers who might not want to cart all their own furniture, and or buyers looking to lease the property out straight away," he said.
"The property is located within close proximity of local schools, cafes and shops including Erina Fair Shopping Centre. The home is also within close proximity of the stunning Terrigal Beach and only 1.5 hours’ drive from Sydney CBD."
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mick.cee-iDmgDDAmu8

NSW Central Coast trophy makes SQM top ten discounted list

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In our Purchase or Pass segment this week with Charles Tarbey and Tom Panos we see if it was still possible to get a great investment, close to the city, for a reasonable budget at the end of last year.
Location: 8.5kms from CBD
Beds: 1
Bath: 1
Parking: 1
SQM: 68m
Price: $625k
Rent: $550-600/wk
Chris: It’s a 1 bed, 1 bath unit with parking 8.5km’s from the CBD and <a href="https://www.realestate.com.au/property-apartment-nsw-coogee-121217178" target="_blank">less than a km to the local action</a>. It’s a 68 sqm first floor unit, with courtyard off the lounge for outside dining and entertaining. It’s located at the back of the building in a well maintained security block. The property sold for $625k, has a rental estimate of $550-600/wk and has strata fees of $633/qtr. I thought we’d look at some of the information on the advert and decipher how we’d read into that. So when you hear something that’s maybe 8.5km from the CBD and less than a km from the heart of the suburb, what does that mean to you Charles?
Charles: Well, as we’ve always said the western suburbs start at Centennial Park for most people. It’s nice and located close to the city and if you’ve brought it up or you’ve raised it as a property for purchase or pass it’s likely to be in the eastern suburbs somewhere and you’ve likely bought it off one of your mates who work near the eastern suburbs. That’s what I got out of there. What have you got out of that Tom?
Chris: What about for you Tom, 68sqm?
Tom: It says to me that it’s not tiny, it’s the sort of unit that’s liveable. So they’re happy to talk about the size there. And on that previous point, 8.5ks to the city. Anything within 10ks of the city you think it’ll suit a city dweller. So it feels like you might not be right in the heart of it, but you’re close to it. That’s the initial impression.
Chris: Charles, for some of the listeners in the Blue Mountains who like fresh air, how does the courtyard suit?
Charles: Well, I had a look at the photo it looked pretty nice. It looked like I was looking at a wall but was that right, are you looking at a bit of wall?
Chris: Potentially, yeah
Charles: So we’d call that privacy, right, so you get no neighbours looking at you. So that’s what I’d get from that. Tell me, 68sqm does that include a patio?
Chris: That’s including the patio, yeah
Charles: and not the car space
Chris: Yeah, I think car space is maybe 15 on top or something. So again it’s not massive.
Charles: No, it’s a great price for that size
Chris: Backward block Tom?
Tom: Backward block to me, straightaway the initial feeling is that it’s quiet, that you’re not going to be hearing lots and lots of noise. That’s the suggestion on why the agent would write that in the marketing literature.
Chris: Maybe the block’s the other way around and the backs the freeway, you never know so you’ve also got to go and check it out at the same time. But in this case that’s right. North facing Charles?
Charles: Well, that’s an important part of it, you know, the sun, making sure it’s not facing the west where you’ve just got to have your air conditioning on at a certain time. Facing north always is an appealing thing and every agent will use it when they can.
Chris: 22 end block Tom?
Tom: 22, it’s basically saying it’s not one of these big Meriton complexes, where you won’t know everyone. 22, you’ll get to know who the people are there. It’s also not as good as say 6, 8, 10 or 12, but 22 says that it’s not a monster of a building. 
Chris: Yeah, reasonable size. 633 a quarter for the strata fees Charles?
Charles: Yeah, I thought that was really excellent. Actually, and I would have promoted that as probably one of the first points because some of those buildings down there can cost you a great deal more and a lot of people are very concerned about strata fees and they should be.
Chris: Yeah, and I’ll do the final one, 5-600 a week for the rent, 4 and a half to 5 per cent rent this market it’s pretty superb so purchase or pass for you guys?
Charles: Definitely purchase based on the price
Chris: And what about you Tom?
Tom: Purchase, whether it’s 625 or 650 I’m not quite sure what it was, but it’s a good buy.
(Chris) I think this is an almost text book purchase for someone that has a limited budget and still wants to stay in a blue chip suburb. Everything ticks the boxes for me so I would PURCHASE
To watch the discussion in full, <a href="https://www.youtube.com/watch?v=eKMvn0Pu9nc" target="_blank">click here</a>.
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Purchase or Pass: Property investments on a reasonable budget with Chris Gray

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Aquis Australia, controlled by Hong Kong billionaire developer Tony Fung, is buying a 1700 sum beachfront site in Surfers Paradise for more than $23 million.
The 3464-3466 Main Beach Parade is one of the last major beachfront development sites in the area and was created through the amalgamation of apartments in the Pacific Point apartment building and two adjoining properties, according to the Courier Mail.
It will be Fung's third major acquisition of a site in Surfers Paradise in a year.
The 1700 sqm site has 70m of beach frontage.
“Beachfront development sites are increasingly rare or come with major hurdles to development,” Fung was quoted as telling the Courier Mail.
Fung also controls the ASX-listed Aquis Entertainment that owns and operates Casino Canberra and is currently progressing plans a for a large-scale real estate and entertainment project at Yorkeys Knob, north of Cairns.
Last year, he paid $55 million for the former International Beach Resort on the Surfers Paradise Esplanade where he is said to be planning a Q1-scale apartment tower.
Last week, a consortium comprising Aquis Australia, CCCC International Holding Ltd and Tandellan Group completed the acquisition of a 1.05ha site bordered by the Gold Coast Highway, Palm Avenue, Cypress Avenue and Surfers Paradise Boulevard for $40 million.
Fung said he and his partners were considering a range of development options for the site.
“It is the last, large-scale undeveloped site in Surfers Paradise and presents a tremendous opportunity to create something special that will compete for attention on the world stage,” he said.
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HK's Tony Fung acquires another Surfers Paradise site for $23 million

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Sentiment among residential property professionals turned positive after three consecutive quarterly falls, led by Victoria though Western Australia was still falling, according to NAB’s Residential Property Index for the first quarter of 2016.
Meanwhile, foreign buyers are pulling back across most states except Queensland.
The NAB Residential Property Index rose to +6 in Q1’16 (+1 in Q4’15), but is still sitting below its long-term survey average (+13).
NAB expects average national house prices in 2016 to rise by 1.5%, with unit prices to fall 1%.
According to NAB Group Chief Economist Alan Oster: “The latest results continue to paint a very mixed picture across the country, with positive sentiment in the Eastern seaboard states offsetting negative results in all other states.”
Foreign buyers are shifting their focus to Queensland (more than one in five new sales). 
Overall, sentiment remains strongest in Victoria, which is also the only state tracking above its long-term average. Sentiment improved most in NSW in Q1 2016 and also lifted modestly in Queensland and SA/NT (but still negative). In contrast, it fell to a new survey low in WA which continues to trail the rest of the country by a considerable margin.
Survey expectations for national house price growth over the next year were broadly unchanged, but again there were notable differences across the states.
Expectations for price growth improved most in Victoria (1.7%) and are now highest in the country. They also improved in SA/NT, but remain quite weak (-0.1%). Expectations weakened a little in Queensland (1.2%) and were also revised down in NSW (-0.2%) and WA (1%).
Looking further out, house prices are expected to grow in most states in two years, with Victoria (1.6%) and Queensland (1.4%) leading the way, with small gains also forecast for WA (0.4%) and SA/NT (0.3%). NSW is the exception, with the survey predicting modest falls (-0.1%).
“At this point in the housing cycle, it is not clear whether the gains over first quarter of 2016 are pointing to an ongoing trend, or if it is simply a flash in the pan before the market peak, perhaps triggered by external factors,” said Oster.
Accordingly, NAB has marginally increased its average national house price forecast in 2016 to 1.5% (from 1%). Unit price forecasts are broadly unchanged, with large additions to supply expected to contribute to a decline of 1% over 2016.
By capital city, Brisbane and Melbourne are expected to be the best performers, with Brisbane house prices forecast to rise by 2.6% in 2016, while Melbourne increases 2.3%. Sydney house price growth is forecast to moderate significantly to just 1.5%. The Adelaide market is not expected to improve much in 2016 - an increase 0.2% roughly offsetting a similar fall in prices in 2015. Perth will remain very weak as prices decline by another 3%.
For apartments, flat to falling prices are expected across most capital cities. The worst declines are forecast to again be in Perth, as well as Melbourne (both -3%). The decline in Perth largely reflects economic conditions, while falls in Melbourne are expected as a result of added supply and weaker investor demand. Sydney unit prices will also be weaker (-0.6%), while Brisbane unit prices are expected to decline by a similar amount.
Another key take out from the survey is the smaller role being played by foreign buyers in Australia’s housing market.
“Their market share of property sales in both new and established housing markets has been falling since the final quarter of 2015, which also coincides with the introduction of tighter legislation around foreign purchases of Australian property,” said Oster.
In new property markets, the share of demand coming from foreign buyers fell to a 2½ year low of 11.8% and down from a survey high of 16.8% in Q3’14.
Moreover, the survey is highlighting a shift in foreign buyers away from Victoria and NSW to Queensland, perhaps in search of better value.
Foreign buyers in Victoria and NSW accounted for around one in 10 new property sales in the March quarter, but in Queensland they purchased more than one in five new properties.
Foreign buyers had previously accounted for around one in three new home sales in Victoria in late-2014 and around one in five sales in NSW in early-2015.
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Property sentiment lifts after three quarterly falls: NAB's Q1 survey

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Listed real estate services provider McGrath has downgraded FY16 forecasts due to weaker than expected market conditions and said EBITDA figures will be $4 to 5 million lower than the prospectus forecast.
Lower than expected listings and sales volumes in the first half of April drove the weaker forecast, along with listings in the newly-acquired Smollen Group which are now expected to be 25-30 percent lower in Q42016 than previously forecast, according to Bell Potter.
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.25%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.25%20PM.png" alt="">
The latest Bell Potter report on McGrath said the downgrade is disappointing given the company was tracking to budget for the first 9 months of FY16 and more so given it was largely attributed to the recently acquired Smollen Group.
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<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.33%20PM.png" alt="" width="624" height="227">
 
The Bell Potter report stated they have downgraded EPS forecasts in FY16, FY17 and FY18 by 15 percent, 25 percent and 24 percent respectively, with the revised FY16 EBITDA forecast of $26.5m within the guidance range of $26-27m.
"The majority of the downgrades have been in the company owned sales division, with reductions in sales per agent and EBITDA margin reflecting the tougher market conditions experienced in Q4 which are likely to extend into FY17 and FY18," it said.
"Given the severity of the 4Q slowdown our earnings downgrades are higher in FY17 and FY18. We now expect FY16 revenue of $137m compared to the revised guidance range of $136-140m, and EBITDA of $26.5m compare to revised guidance of $26-27m."
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McGrath downgrades FY16 forecasts: Bell Potter

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GUEST OBSERVER
Today’s RBA Minutes are similar in most respects to the Statement following the April meeting. But the wording around the considerations for monetary policy implies to us that the easing bias is stronger.
Mainly because the higher Australian dollar (AUD) will “complicate” the economy’s adjustment to different growth drivers.
It may be that the RBA has decided that the fundamental drivers of the AUD, like global bulk commodity prices, are now more likely to be higher over the rest of the 2016.
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The minutes have a comment that the terms of trade is set to rise modestly because of the pick-up in bulk commodity prices. It means the risks on the AUD may be rebalancing to the upside, and away from the more comfortable (for the economy) levels under USD0.75. A higher AUD complicates lots of things, especially the inflation outlook. Lower inflation outcomes could justify lower cash rate settings than current. Especially if some more downside growth risks, like significant global financial market volatility, become reality.
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The minutes indicate a number of positive developments in the domestic economy. Established house price growth has continued to ease, reducing the risks around the property sector. The strong lift in supply of new apartments has also resulted in an easing of their prices. But demand conditions across the country vary considerably. Surveys of national business conditions have been more favourable recently, with signs of a pick-up in non-mining profits. But non-mining investment intentions remain broadly unchanged even though business credit growth has lifted over the past six months.
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Employment growth in the non-mining sectors has been strong. While the recent jobs data was weak, the RBA said it needed to be compared to the unusual strength of activity through late 2015. The unemployment rate looks to have peaked in mid-2015 and leading indicators of the jobs market are mixed. Wages growth remains subdued despite firm jobs growth. Unit labour costs growth has been negligible for the past four years.
There was no RBA commentary on the AUD that indicated that it was out of line with fundamentals. The minutes list the reasons for the AUD moving higher since late 2015. Namely, higher bulk commodity prices and above-trend GDP growth for 2015 of 3% and easy US monetary policy.
We expect the RBA to keep the cash rate at 2 percent over coming months. The domestic economy is rebalancing towards different growth drivers and employment growth is firm. The major issue is the trend to lower inflation outcomes. The higher AUD complicates the picture. So a very low underlying inflation result, say near 0.3%q/q and 1.7%pa, next Wednesday could support a rate cut.
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.25.07%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.25.07%20PM.png" alt="" width="1021" height="460">
 
Michael Workman is senior economist, <a href="https://www.commbank.com.au/corporate/research?ei=mv_research" target="_blank">Commonwealth Bank</a>.
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